Pakistan to benefit from its status of non-emerging economy; experts term it a mourning moment

Pakistan to benefit from its status of non-emerging economy; experts term it a mourning moment

Sometimes even under-performance pays, if not for everyone else, at least for economically floundering state of Pakistan. Recently, the European Union, in wake of the Euro-debt crisis, has decided to cut on its aid to the emerging
economies around the world. And Pakistan, being notorious for having a begging bowl in its hands, would have definitely released a sigh of relief for its currently poor economic conditions which have ensured more aid coming in from its European donors.

As per EU’s decision, it will cut on aid donations to 19 economically emerging countries from 2014. The countries that are to suffer from this aid cut feature Brazil, India, China, Argentina, Peru, Colombia, Malaysia, Indonesia
and Thailand.

Commenting on EU’s decision to cut on its aid provision, Stanley Pignal maintained that the decision was taken to direct the resources where they were needed the most. He said that instead of pouring in money for the societies
that had enough means to take care of their poor, it was imperative to spend it where it could benefit the most deserving people.

Expressing his views in an article in the Financial Times, Pignal wrote, “The shift is ostensibly designed to concentrate European aid on the World’s poorest countries where EU funds can make a tangible difference, rather than
spending it in places where rapid economic growth has given local governments the means to fund their own development initiatives”.

The decision taken on Part of the EU was being regarded as a measure towards cutting on its expenditure – an austerity step to cope up the economic vows the bloc is mired with. However, interestingly, as per the news, despite the
debt crisis EU is suffering from, it has decided to not cut the total amount of aid money it releases every year.

The recently announced decision on part of the confederation has generated two types of responses. The first one not only agrees with this latest step, but deems it crucial for making poverty eradication measures more focused.
However, the other one argues and opposes on the basis that although the countries with emerging economies have now greater resources to facilitate the needs of their people, yet, they have pockets with acute poverty and containing the financial aid will definitely
worsen the humanitarian conditions there.

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Posted by Fayyaz Yaseen on Dec 10 2011. Filed under Latest News, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry